Monthly Digest Of Tax Cases- April 2022

Indirect Taxes Supreme Court1.Plea In Supreme Court Challenges The Constitutional Validity Of Levy Of GST On Lease/ Rent Payments Case Title: Myrayash Hotels Pvt. Ltd. v. Union of India & Ors. The Supreme Court of India has asked the petitioner(s) to serve an advance copy to the Additional Solicitor General to seek instructions in a plea challenging constitutional validity of levy of GST on lease/ rent payments.2.Interest On Delayed Refunds Covered Under Principal Provision Of Section 56 Of CGST Act Cannot Exceed 6%:Supreme Court Case Name: Union of India And Ors. v. M/s. Willowood Chemicals Pvt. Ltd. Citation: 2022 LiveLaw (SC) 398 The Supreme Court, on Tuesday, held that in cases of delayed refund of integrated tax paid on export of goods governed by the principal provision of Section 56 of the Central Goods and Services Tax Act, 2017, the interest would be payable at the rate of 6% as prescribed by the statute, especially when the delay was not inordinate. High Courts Delhi High Court1.Revenue Fails To Discharge Onus Of Grant Of Personal Hearing,Delhi High Court Quashes Order Rejecting Refund Application Under GST Act Case Title: Richie Rich Exim Solutions versus Commissioner of CGST Delhi South Citation: 2022 LiveLaw (Del) 310 The Delhi High Court has quashed the order rejecting an applicant's refund application under GST Act on the ground that the revenue authority had breached the principles of natural justice by not affording a reasonable opportunity to the applicant before rejecting its refund application.2.Show Cause Notice Completely Deficient In Material Particulars: Delhi High Court Quashes GST Registration Cancellation Order Case Title: Fada Trading Private Limited Versus Commissioner Goods and Service Tax Citation: 2022 LiveLaw (Del) 328 The Delhi High Court bench of Justice Rajiv Shakdher and Justice Poonam Bamba has quashed the order cancelling the GST registration as the Show Cause Notice was completely deficient in material particulars. Bombay High Court1.Appeal Against CESTAT Order, On Classification Of Goods, And Determination Of Customs Duty Lies Before The Supreme Court: Bombay High Court Case Title: The Commissioner of Customs II versus Axiom Cordages Ltd The Bombay High Court has ruled than an appeal from an order passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), involving the question with respect to classification of goods under the Customs Act, 1962, would lie before the Supreme Court under Section 130E of the Customs Act, since it is primarily related to determination of the rate of customs duty applicable.2.Dept. To Decide Whether Corrected Form TRAN-1 Would Be Entertained As Per Transitional Provision Under GST: Bombay High Court Allows Taxpayers To Correct Form TRAN-1 Case Title: Ambica Fertilisers Versus The Union of India Citation: 2022 LiveLaw (Bom) 148 The Bombay High Court bench of Justice S.G. Mehare and Justice R.D. Dhanuka has allowed the taxpayers to correct Form TRAN-1. The court has directed the department to consider the issue of whether Form TRAN-1 and other forms that would be filed or corrected by the petitioner can be entertained in accordance with provisions of section 140 of the Central Goods and Services Tax Act, 2017 and Rule 117 (1) of the Central Goods and Services Tax Rules, 2017 or not. Karnataka High CourtMunicipal Corporations Can Levy Advertisement Fee/ Tax Under KMC Act, No Conflict With Levy Of GST:Karnataka High Court Case Title: HUBBALLI DHARWAD ADVERTISERS ASSOCIATION and others v. STATE OF KARNATAKA and Others Citation: 2022 LiveLaw (Kar) 144 The Karnataka High Court has declared that there is no conflict between the power to levy GST under GST Act and power of Municipal Corporation to levy advertisement fee or advertisement tax under Section 134 of the Karnataka Municipal Corporations Act. Madras High Court1.Wrong Declaration In E-Way Bill: Madras High Court Quashes Penalty Under GST As There Was No Intention Of Tax Evasion The Madras High Court bench of Justice C. Saravanan has quashed the penalty under GST for a wrong declaration in an e-way bill as there was no intention of tax evasion.2.Madras High Court Directs GST Dept. To Release Detained Vehicle On Payment Of 25% Of Penalty Case Title: M/s.RKS Agencies Versus State Tax Officer-I The Madras High Court bench of Justice R. Suresh Kumar has directed the GST department to release the detained vehicle on the payment of 25% of the penalty.3.Post Facto Changes In GST Registration: Madras High Court Quashes Penalty Imposed For Mismatch Of Address In Invoice And RC Case Title: Algae Labs Pvt. Ltd. Versus State Tax Officer-I Citation: 2022 LiveLaw (Mad) 166 The penalty imposed for mismatch of address in invoice and RC was quashed by the Madras High Court bench of Justice C. Saravanan on the grounds that there was a post facto...

Monthly Digest Of Tax Cases- April 2022

Mariya Paliwala

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